Do I need permission from the city to place benches on sidewalks and in public places for a bench advertising business?

Generally, if you're going to install anything in a public space, you need permission of some sort. Otherwise, you can imagine the clutter that would appear in every park and sidewalk in the city if everyone did what you were proposing!

New York City government has a website portal for businesses in the city -- visit http://www.nyc.gov/portal/site/businessexpress. You might also try calling 311 to find the right department.

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